LSTA RECEIVES ANOTHER LOAN ON TOP OF LAST YEAR'S UNPAID LOAN

Every year since the initial LSTA authority expired and the operators of LSTA have kept running by rebranding as a privately run operation, the Township  has awarded LSTA loans to kickstart the year without needing to wait for the State funding to kick in.

As previously reported here on FAA News, last year the Township agreed to funnel a $2 million loan to LSTA through the Lakewood Development Corporation. At the time, Mayor Ray Coles confidently assured the LDC that the State's reimbursement was expected to come in December.

In all this time, the LSTA still owes the LDC $600,000 from last year's loan.

But hey, what's a little extension when it's for friends, right??

Also, the LDC this week opened their wallets with yet another $700,000 loan to the LSTA.

LDC Executive Director David Klein explained that this additional loan is for the "gap in funding until funds are secured by LSTA to continue operations."

The loan was approved at a 0.0% rate of interest with final repayment on May 1, 2025.

LSTA Director Abe Kraweicz told the LDC that they are bussing 55,000 kids this year, and "without your funding we would not be able to get the buses off the ground."

The LDC's resolution of approval states, "the Township of Lakewood desires the operation of safe and efficient travel of the tens of thousands of Lakewood’s school children which is a basic requirement of a functioning city. Included in this need is the ability of the Township’s economic resources, including its retail base and offices, especially in the downtown and industrial park areas – as well as other UEZ areas - to operate with a predictable and smooth flow of traffic." This covers them when the state asks how UEZ funds - which are to support businesses - can be used for school bussing.

Since the school year began, some kids are sitting on hour long bus rides, and buses are coming to school late from the previous run. There's limited stops for pick up and drop off and parents can't complain or have any changes done unti a few weeks into September or even after Sukkos. Back when the BOE was in charge of bussing, Township and school leaders would publicly call out the delays and long-times that kids would spend on the bus.

The LDC did not make any comments about these issues prior to stamping their approval to the loan request.

To join the FAA News WhatsApp Status, click here.